The U.S. and Georgia both notched record-breaking years for new solar installation in 2024.
But President Donald Trump’s threats to revoke clean energy tax credits and freeze funding for some energy projects, on top of his on-again, off-again tariffs, could slow momentum in the field, according to an annual report released Tuesday from a leading industry association.
Nationally, solar accounted for 66% of all new electricity-generating capacity added to the grid last year, according to the report from the Solar Energy Industries Association and Wood Mackenzie. That represents nearly 50 gigawatts, a 21% increase from the previous record set in 2023. New battery storage accounted for an additional 18%, making solar plus battery 84% of all new generation, according to the report.
Credit: Solar Energy Industries Association/Wood Mackenzie
Credit: Solar Energy Industries Association/Wood Mackenzie
A single gigawatt of solar capacity can power about 172,000 homes per national averages, according to SEIA’s methodology.
Sean Gallagher, SEIA’s senior vice president of policy, said solar was outcompeting natural gas as a source of new generation, with gas generators facing rising costs and a yearslong build-out.
“Solar and storage is the fastest thing you can put on the grid these days,” Gallagher said.
He cautioned, however, that dramatic shifts in federal policy could undermine the progress the solar industry has made. Trump and his energy secretary, former fracking executive Chris Wright, have pledged to reverse course from the Biden administration by focusing on fossil fuels and pulling back support for renewables. This comes as Republicans in Congress seek ways to find money to offset the costs of extended income and corporate tax cuts and other priorities of the president.
But Republicans are far from united on the issue. This week, a letter signed by 21 House Republicans urged their colleagues to avoid more “disruptive changes” to energy tax policy as the economy shows signs of strain from an escalating trade war and mass firings of federal workers. One study found that 85% of private clean energy investment spurred by the incentives targeted by Trump have gone to Republican Congressional districts.
The SEIA report offered three forecasts depending on different policy and economic scenarios. All three saw the U.S. continuing to add solar in the years to come, with a bullish outlook predicting a 22% increase in utility-scale installations over the base case, and the bearish forecast predicting a 17% contraction.
Credit: Daniel Varnado
Credit: Daniel Varnado
The report found that Georgia set its own state record by installing more than 1.5 gigawatts in 2024, more than double the capacity installed in 2023.
A spokesman for SEIA said Georgia now has 7.5 gigawatts of installed solar capacity, enough to power 870,000 homes based on the state’s average power consumption.
Georgia ranked 12th among states for new installed solar in 2024, with Texas taking the top spot for the second year in a row.
Georgia was also a key part of the re-shoring of solar manufacturing in the U.S., with solar module manufacturing growing 190% from 2023 to 2024. Much of this growth was attributed to the opening or expansion of large factories for Suniva and Qcells in the state.
Credit: Steve Schaefer /
Credit: Steve Schaefer /
As installed capacity went up, prices for commercial and utility-scale systems went down 7% and 4% respectively.
While large-scale systems flourished, one segment of the market did decline: residential solar.
Total capacity of new residential installation last year dropped 32% from 2023. The report attributed this contraction to company bankruptcies, high interest rates, consumer hesitancy and changes in some states’ policies that made rooftop solar less attractive.
Don Moreland, the executive director of the Georgia Solar Energy Association, said at first glance, the report appeared to foretell the beginning of the end for natural gas. He echoed Gallagher’s point about the timeline for gas projects versus solar, citing the need for new generation built quickly in order to maintain U.S. dominance in artificial intelligence.
But he also said a lot of gas projects were already approved, including in Georgia, and the pendulum could swing the other way.
“The question is, what happens if solar+storage becomes even more cost effective in 3-5 years,” Moreland wrote in an email. “Some are predicting complete solar+battery dominance within 10 years.”
He expressed disappointment in Georgia’s residential solar sector, which he said continues to lag behind the rest of the country because of policy barriers. He said solar advocates would be watching Georgia Power’s regulatory proceedings at the Public Service Commission this year closely and pushing for more favorable solar policies.
John Kraft, a spokesman for Georgia Power, wrote in an email that the state is a national leader in “responsible” solar development, and the utility has plans to add thousands of megawatts of renewable resources in the coming years.
“There are many reasons residential electric customers may or may not choose solar,” he said. “In recent years, we have focused on offering new tools and resources for customers to help them understand their energy and better decide if solar energy is right for them, and we’re always available for customers considering solar energy at their home or business.”
Credit: Nathan Posner for The Atlanta Journal-Constitution
Credit: Nathan Posner for The Atlanta Journal-Constitution
Tom Krause, a spokesman for the Public Service Commission, which regulates investor-owned utilities including Georgia Power, said the commission had no immediate comment on the report but that staff would be reviewing it to update elected regulators with pertinent information.
A spokeswoman for the organization representing electric cooperatives in the state did not immediately respond to a request for comment.
Alicia Brown, the director of a Georgia BRIGHT, which was awarded $156 million in federal funds to expand rooftop solar in Georgia, said in an email that despite challenges in the residential sector, there were many reasons to be encouraged about solar expansion in 2025 and beyond. Shortly after his inauguration, Trump issued a flurry of executive orders that temporarily halted some climate funding before the courts intervened to restart the flow of funds.
A spokesperson for the organization confirmed that Georgia BRIGHT is moving forward with its solar leasing program aimed at low-income households using the previously announced funding.
“These investments will deliver energy savings to households, electrons to stressed energy grids, and good paying jobs to communities,” Brown said. “These benefits are universal and remain strong through any type of uncertainty.”
Note of disclosure
This coverage is supported by a partnership with Green South Foundation and Journalism Funding Partners. You can learn more and support our climate reporting by donating at ajc.com/donate/climate.
About the Author
Keep Reading
The Latest
Featured
